Ex-Sun editor attacks 'ridiculous' AIB

A FORMER editor of The Sun newspaper has launched an extraordinary attack on AIB for not agreeing to a deal that would have saved his magazine publishing company.

Kelvin Mackenzie, who edited The Sun for most of the 1980s and the early 1990s, said the bank was "bloody ridiculous" for not backing a refinancing package that would have saved his Highbury House Communications Limited.

The company was placed into administration after a €43 million deal to reduce its debts collapsed earlier this month.

In an interview with a British newspaper yesterday, Mr Mackenzie said the company's three lenders - AIB, Barclays and the Royal Bank of Scotland - could have agreed to a refinance package that would have seen them write off some of the value of their investment in Highbury, but it would have kept the company afloat.

He claimed that Barclays were in favour of the plan, Royal Bank was undecided but AIB was against it.

In an attack on AIB he said: "I would like to know what other kinds of idiot decisions they are making all day long."

In a statement, AIB said: "AIB is precluded from disclosing information on Highbury House Ltd, or discussing its affairs, by virtue of the legal obligation of confidentiality owed by a banker to its customer."

Mr MacKenzie bought a 20% stake in Highbury last year. The company publishes popular lads' magazine Front and about 30 other titles.

He has since quit as the company's chief executive and is almost certain to lose most of his investment.

It is not known how much of a loss AIB are sitting on. It has been a lender to Highbury House for a number of years.